What are reward points?
Reward points are a loyalty program feature where customers earn points for purchases or actions. These points can be accumulated and redeemed for discounts, free items, or special offers, encouraging repeat visits and increasing customer engagement with a business.
Step-by-Step Guide to Setting Up a Reward Points Program for Your Restaurant
Overview
Running a restaurant isn't just about serving great food - it's also about getting people to come back again and again. One of the best ways to do that is by starting a reward points program. This type of loyalty program gives your customers points each time they visit or make a purchase. Over time, they can collect these points and trade them in for something they want - like a discount, a free drink, or a free meal. It's a simple way to say thank you and give people a reason to return.
Many big businesses already use reward points, but small and local restaurants can benefit just as much. A good program doesn't have to be expensive or complicated. You just need to know what your customers like and how to keep things easy for your staff.
In this guide, we'll walk you through the steps to set up a reward points program that works for your restaurant. You'll learn how to set clear goals, choose the right setup, train your team, and promote the program to your customers. By the end, you'll be ready to launch a loyalty system that helps your business grow - one point at a time.
Many big businesses already use reward points, but small and local restaurants can benefit just as much. A good program doesn't have to be expensive or complicated. You just need to know what your customers like and how to keep things easy for your staff.
In this guide, we'll walk you through the steps to set up a reward points program that works for your restaurant. You'll learn how to set clear goals, choose the right setup, train your team, and promote the program to your customers. By the end, you'll be ready to launch a loyalty system that helps your business grow - one point at a time.
Define Your Program Goals
Before you jump into setting up your reward points program, it's important to stop and think about why you're doing it. What do you want the program to accomplish? Having clear goals will help you design a program that fits your restaurant's needs and gives your customers real value.
Start by asking yourself a few simple questions -
-Do I want more repeat customers?
-Do I want customers to spend more during each visit?
-Am I trying to attract new diners or keep my regulars happy?
-Do I want to reward specific actions, like trying a new menu item or ordering online?
The answers will help guide your decisions. For example, if your goal is to bring customers back more often, you might offer points for every visit. If you want people to spend more per order, give more points based on how much they spend. If you're launching a new item or service, offer bonus points for trying it out.
Make sure your goals are realistic and easy to measure. Don't just say I want more loyal customers. Try something like, I want 25% of my customers to sign up for the program in the first three months, or I want to increase repeat visits by 10% over the next six months. These kinds of goals give you something clear to track.
Also, think about your customers. What kind of rewards would they actually care about? If you run a casual cafe, people might love a free coffee after a few visits. If you run a fine dining spot, a discount or free dessert might feel more appropriate. When the rewards match what your customers value, they'll be more excited to join.
Taking the time to set the right goals now will make the rest of the process much smoother. With a clear direction, you'll be able to build a reward points program that works - not just for your business, but for the people who keep it running- your customers.
Start by asking yourself a few simple questions -
-Do I want more repeat customers?
-Do I want customers to spend more during each visit?
-Am I trying to attract new diners or keep my regulars happy?
-Do I want to reward specific actions, like trying a new menu item or ordering online?
The answers will help guide your decisions. For example, if your goal is to bring customers back more often, you might offer points for every visit. If you want people to spend more per order, give more points based on how much they spend. If you're launching a new item or service, offer bonus points for trying it out.
Make sure your goals are realistic and easy to measure. Don't just say I want more loyal customers. Try something like, I want 25% of my customers to sign up for the program in the first three months, or I want to increase repeat visits by 10% over the next six months. These kinds of goals give you something clear to track.
Also, think about your customers. What kind of rewards would they actually care about? If you run a casual cafe, people might love a free coffee after a few visits. If you run a fine dining spot, a discount or free dessert might feel more appropriate. When the rewards match what your customers value, they'll be more excited to join.
Taking the time to set the right goals now will make the rest of the process much smoother. With a clear direction, you'll be able to build a reward points program that works - not just for your business, but for the people who keep it running- your customers.
Choose the Right Reward Points Structure
Now that you know what you want your reward points program to achieve, it's time to figure out how your customers will earn and use their points. This part is important because a confusing or unappealing structure can turn people away, while a clear and rewarding one will keep them coming back.
Start with the basics
How will customers earn points?
There are a few common ways to do this -
1. Per dollar spent - For example, customers earn 1 point for every $1 they spend.
2. Per visit - You can offer a set number of points each time someone visits, no matter how much they spend.
3. Bonus points for certain actions - Like signing up for the program, ordering online, coming in on a slow day, or referring a friend.
Each method has its pros. If your goal is to boost average spending, a per dollar setup makes sense. If you want to drive repeat visits, per visit may be better. You can also mix things - give 1 point per dollar, but offer bonus points on special days or for trying new items.
Next, decide how customers can redeem their points. Some ideas include -
-A free item (e.g., free drink, appetizer, or dessert)
-A discount off their bill (e.g., $5 off after earning 100 points)
-Access to exclusive offers or events
Whatever you choose, keep it simple. Make sure customers don't need a calculator to understand how the system works. A good rule is to make sure that the value of the reward feels worth it - but not so generous that it hurts your profit.
Also, think about the pace of earning. If it takes too long to earn a reward, customers might lose interest. If it's too easy, the rewards might feel less special and could become too costly for you.
Finally, write down the rules clearly. Keep it short and easy to understand - both for your customers and your staff. A well-designed reward structure is the heart of a good loyalty program, so take the time to get it right.
Start with the basics
How will customers earn points?
There are a few common ways to do this -
1. Per dollar spent - For example, customers earn 1 point for every $1 they spend.
2. Per visit - You can offer a set number of points each time someone visits, no matter how much they spend.
3. Bonus points for certain actions - Like signing up for the program, ordering online, coming in on a slow day, or referring a friend.
Each method has its pros. If your goal is to boost average spending, a per dollar setup makes sense. If you want to drive repeat visits, per visit may be better. You can also mix things - give 1 point per dollar, but offer bonus points on special days or for trying new items.
Next, decide how customers can redeem their points. Some ideas include -
-A free item (e.g., free drink, appetizer, or dessert)
-A discount off their bill (e.g., $5 off after earning 100 points)
-Access to exclusive offers or events
Whatever you choose, keep it simple. Make sure customers don't need a calculator to understand how the system works. A good rule is to make sure that the value of the reward feels worth it - but not so generous that it hurts your profit.
Also, think about the pace of earning. If it takes too long to earn a reward, customers might lose interest. If it's too easy, the rewards might feel less special and could become too costly for you.
Finally, write down the rules clearly. Keep it short and easy to understand - both for your customers and your staff. A well-designed reward structure is the heart of a good loyalty program, so take the time to get it right.
Select a Technology Platform
Once you know how your reward points system will work, the next step is choosing the right tool to run it. A good technology platform will make your life easier by keeping track of points, helping you communicate with customers, and making sure everything runs smoothly - without a lot of extra work for you or your staff.
You have a few options when it comes to technology -
1. Point-of-Sale (POS) Integration
Many modern POS systems include built-in loyalty programs or have the option to add one. This is often the easiest route because it connects directly to your sales. When customers make a purchase, the system can automatically apply points based on how much they spend. Look into whether your current POS system offers this feature or if there are loyalty apps that can connect to it.
2. Loyalty Apps and Software
There are many third-party apps and platforms designed just for loyalty programs. Some are very simple - customers just enter their phone number at checkout. Others offer more advanced features like mobile apps, email marketing, or customer insights. Choose one that matches your needs. If you're just starting out, go with a tool that's easy to set up and understand.
3. Manual Systems (Not Recommended Long-Term)
Some small restaurants start with a simple manual system - like punch cards or writing down customer visits. While this can work in the beginning, it's hard to manage as you grow. Customers can lose cards, staff can forget to stamp them, and there's no easy way to track or learn from the data. A digital system is almost always better in the long run.
What to Look for in a Platform
- Easy for staff to use during busy shifts
-Simple sign-up process for customers
-Works well with your existing tools (POS, email, etc.)
-Tracks points automatically
-Lets you send promotions or reminders
-Affordable pricing that fits your budget
Choosing the right platform is like picking the right kitchen equipment - it should make your job easier, not harder. Take your time, try out a demo if available, and make sure it supports the kind of reward system you want to offer.
You have a few options when it comes to technology -
1. Point-of-Sale (POS) Integration
Many modern POS systems include built-in loyalty programs or have the option to add one. This is often the easiest route because it connects directly to your sales. When customers make a purchase, the system can automatically apply points based on how much they spend. Look into whether your current POS system offers this feature or if there are loyalty apps that can connect to it.
2. Loyalty Apps and Software
There are many third-party apps and platforms designed just for loyalty programs. Some are very simple - customers just enter their phone number at checkout. Others offer more advanced features like mobile apps, email marketing, or customer insights. Choose one that matches your needs. If you're just starting out, go with a tool that's easy to set up and understand.
3. Manual Systems (Not Recommended Long-Term)
Some small restaurants start with a simple manual system - like punch cards or writing down customer visits. While this can work in the beginning, it's hard to manage as you grow. Customers can lose cards, staff can forget to stamp them, and there's no easy way to track or learn from the data. A digital system is almost always better in the long run.
What to Look for in a Platform
- Easy for staff to use during busy shifts
-Simple sign-up process for customers
-Works well with your existing tools (POS, email, etc.)
-Tracks points automatically
-Lets you send promotions or reminders
-Affordable pricing that fits your budget
Choosing the right platform is like picking the right kitchen equipment - it should make your job easier, not harder. Take your time, try out a demo if available, and make sure it supports the kind of reward system you want to offer.
Design Clear and Simple Rules
Once you've chosen how your reward points system will work and the technology to run it, it's time to set the rules. These rules tell customers how they can earn points, how they can use them, and any limits they should know about. The goal here is to keep things clear, simple, and fair.
Start With the Basics
Clearly explain -
1. How customers earn points - Is it 1 point per dollar spent? Or 10 points per visit?
2. How customers redeem points - What do they get, and how many points does it cost?
3. How to join - Can anyone join? Do they need to sign up online or in person?
These details should be easy to understand and easy to explain. If a customer or staff member has to stop and think too hard about how it works, it's too complicated.
Keep It Transparent
Customers want to know what they're getting and when. Avoid fine print that might frustrate them later. For example -
-If points expire, clearly say when and why.
-If certain items don't earn points (like alcohol or gift cards), be upfront about it.
-If there's a limit to how often they can redeem points, let them know.
Post the main rules somewhere visible - on your website, on a flyer, or printed on a sign near the register. Make it easy for staff to explain and easy for customers to remember.
Think About Limits and Controls
Setting rules also helps protect your business. For example -
-You can limit how many points can be used in one visit.
-You can set a minimum number of points needed before redemption.
-You can make some rewards available only on certain days or times (like slow weekdays).
These types of rules can help you control costs while still making the program feel valuable to customers.
In the end, a good reward program should feel easy, fun, and fair. The clearer your rules are, the more people will use the program - and trust that it's worth their time.
Start With the Basics
Clearly explain -
1. How customers earn points - Is it 1 point per dollar spent? Or 10 points per visit?
2. How customers redeem points - What do they get, and how many points does it cost?
3. How to join - Can anyone join? Do they need to sign up online or in person?
These details should be easy to understand and easy to explain. If a customer or staff member has to stop and think too hard about how it works, it's too complicated.
Keep It Transparent
Customers want to know what they're getting and when. Avoid fine print that might frustrate them later. For example -
-If points expire, clearly say when and why.
-If certain items don't earn points (like alcohol or gift cards), be upfront about it.
-If there's a limit to how often they can redeem points, let them know.
Post the main rules somewhere visible - on your website, on a flyer, or printed on a sign near the register. Make it easy for staff to explain and easy for customers to remember.
Think About Limits and Controls
Setting rules also helps protect your business. For example -
-You can limit how many points can be used in one visit.
-You can set a minimum number of points needed before redemption.
-You can make some rewards available only on certain days or times (like slow weekdays).
These types of rules can help you control costs while still making the program feel valuable to customers.
In the end, a good reward program should feel easy, fun, and fair. The clearer your rules are, the more people will use the program - and trust that it's worth their time.
Train Your Staff
Your reward points program is only as good as the people running it - your staff. Even the best-designed program can fail if your team doesn't understand how it works or doesn't know how to explain it to customers. That's why proper training is a key part of setting up your loyalty system.
Start with the Basics
Make sure every team member understands -
-How customers earn points
-How points are tracked (through the POS or app)
-How to check a customer's points balance
-How to redeem rewards correctly
-What the main rules are (point value, expiration, limits)
Use real examples during training. Walk through a full customer visit - from sign-up to earning and using points - so staff can see how it works step-by-step.
Encourage Consistency
Your staff should all give the same message about the program. If one person explains it one way and another says something different, it can confuse customers and cause problems. Give your team a cheat sheet or small printed guide they can quickly refer to during a shift.
Practice Customer Conversations
Show your team how to introduce the program during everyday interactions. For example-
-Would you like to sign up for our rewards program? You'll earn points every time you visit.
-You've earned enough points for a free coffee today - would you like to use them?
This helps make the program part of your service, not something extra or awkward.
Do a Training Evaluation
After your team has been trained, take some time to do a quick training evaluation. Ask questions to check understanding. You can do this through a short quiz, a casual group discussion, or one-on-one check-ins. This helps you catch any confusion early and make sure everyone feels confident using the system.
Keep Training Ongoing
As your program grows or changes, update your staff. New team members should be trained the same way. And if you add new rewards or features, hold a quick refresher session.
When your staff is well-trained and confident, they'll be more likely to talk about the program - and customers will be more likely to join and keep coming back.
Start with the Basics
Make sure every team member understands -
-How customers earn points
-How points are tracked (through the POS or app)
-How to check a customer's points balance
-How to redeem rewards correctly
-What the main rules are (point value, expiration, limits)
Use real examples during training. Walk through a full customer visit - from sign-up to earning and using points - so staff can see how it works step-by-step.
Encourage Consistency
Your staff should all give the same message about the program. If one person explains it one way and another says something different, it can confuse customers and cause problems. Give your team a cheat sheet or small printed guide they can quickly refer to during a shift.
Practice Customer Conversations
Show your team how to introduce the program during everyday interactions. For example-
-Would you like to sign up for our rewards program? You'll earn points every time you visit.
-You've earned enough points for a free coffee today - would you like to use them?
This helps make the program part of your service, not something extra or awkward.
Do a Training Evaluation
After your team has been trained, take some time to do a quick training evaluation. Ask questions to check understanding. You can do this through a short quiz, a casual group discussion, or one-on-one check-ins. This helps you catch any confusion early and make sure everyone feels confident using the system.
Keep Training Ongoing
As your program grows or changes, update your staff. New team members should be trained the same way. And if you add new rewards or features, hold a quick refresher session.
When your staff is well-trained and confident, they'll be more likely to talk about the program - and customers will be more likely to join and keep coming back.
Promote Your Reward Points Program
Once your reward points program is set up and your staff is trained, it's time to get the word out. A loyalty program only works if customers know about it and understand the benefits. Promotion is key to getting people to sign up and start using it.
Start In-House
Your restaurant is the best place to promote your program. Train your team to mention it during checkout or when handing over the bill. A simple phrase like, Would you like to join our rewards program and earn points for this visit? can make a big difference.
You can also -
-Put up signs at the entrance, register, or on tables
-Add information to printed receipts
-Include a mention in your menu, especially if it's digital or has a QR code
Make sure the message is clear and short. Focus on what the customer gets out of it - like Earn points every time you visit or Get a free coffee after 5 visits.
Use Your Online Channels
If you have a website or use social media, use those spaces to promote your reward points program. You can post about how it works, what customers can earn, and even share reminders like, Don't forget to earn points on your next visit!
Other ideas -
-Create a short FAQ page or section on your website
-Add a sign-up link if your program is online
-Send an email to your existing customer list introducing the program
Offer a Sign-Up Bonus
To give your program a strong start, offer a small reward for signing up. For example, Get 20 bonus points just for joining. This gives customers a reason to sign up right away.
Keep It Going
Promotion shouldn't stop after launch. Keep mentioning your rewards program regularly so new and returning customers are reminded. You can also run limited-time promotions like double points days or special rewards during holidays or slow periods.
With the right promotion, your reward points program won't just exist - it will thrive. The more people join, the more value you'll see from the loyalty and repeat visits it brings.
Start In-House
Your restaurant is the best place to promote your program. Train your team to mention it during checkout or when handing over the bill. A simple phrase like, Would you like to join our rewards program and earn points for this visit? can make a big difference.
You can also -
-Put up signs at the entrance, register, or on tables
-Add information to printed receipts
-Include a mention in your menu, especially if it's digital or has a QR code
Make sure the message is clear and short. Focus on what the customer gets out of it - like Earn points every time you visit or Get a free coffee after 5 visits.
Use Your Online Channels
If you have a website or use social media, use those spaces to promote your reward points program. You can post about how it works, what customers can earn, and even share reminders like, Don't forget to earn points on your next visit!
Other ideas -
-Create a short FAQ page or section on your website
-Add a sign-up link if your program is online
-Send an email to your existing customer list introducing the program
Offer a Sign-Up Bonus
To give your program a strong start, offer a small reward for signing up. For example, Get 20 bonus points just for joining. This gives customers a reason to sign up right away.
Keep It Going
Promotion shouldn't stop after launch. Keep mentioning your rewards program regularly so new and returning customers are reminded. You can also run limited-time promotions like double points days or special rewards during holidays or slow periods.
With the right promotion, your reward points program won't just exist - it will thrive. The more people join, the more value you'll see from the loyalty and repeat visits it brings.
Monitor, Evaluate, and Adjust
After your reward points program is up and running, your work isn't over. To make sure the program truly benefits your restaurant, you need to regularly monitor how it's performing, evaluate the results, and make changes if needed. This ongoing process helps you keep your customers engaged and improve your customer loyalty over time.
Track Key Metrics
Start by keeping an eye on important numbers like -
-How many customers are signing up
-How often members visit compared to non-members
-How many points are earned and redeemed
-Which rewards are most popular
These numbers tell you what's working and what might need improvement.
Listen to Your Customers
Ask your customers for feedback about the program. You can do this in person, with a short survey, or even online. Find out if they understand how it works, if the rewards feel valuable, and if they have suggestions.
Look for Challenges
Sometimes, even a good program runs into problems. Maybe points aren't being tracked correctly, or customers find the rules confusing. Maybe the rewards are too hard or too easy to earn. Use the data and feedback to spot these issues early.
Make Adjustments
Don't be afraid to tweak your program. You might -
-Change how many points customers earn per visit
-Add new types of rewards
-Adjust expiration dates for points
-Simplify rules to avoid confusion
Small changes can make a big difference in keeping your customers excited about your program.
Keep Improving Customer Loyalty
Remember, the goal of your reward points program is to build strong customer loyalty. By monitoring and adjusting your program regularly, you create a better experience that encourages customers to keep coming back - and tell their friends too.
Staying flexible and responsive will help your loyalty program grow with your restaurant and keep it successful for the long term.
Track Key Metrics
Start by keeping an eye on important numbers like -
-How many customers are signing up
-How often members visit compared to non-members
-How many points are earned and redeemed
-Which rewards are most popular
These numbers tell you what's working and what might need improvement.
Listen to Your Customers
Ask your customers for feedback about the program. You can do this in person, with a short survey, or even online. Find out if they understand how it works, if the rewards feel valuable, and if they have suggestions.
Look for Challenges
Sometimes, even a good program runs into problems. Maybe points aren't being tracked correctly, or customers find the rules confusing. Maybe the rewards are too hard or too easy to earn. Use the data and feedback to spot these issues early.
Make Adjustments
Don't be afraid to tweak your program. You might -
-Change how many points customers earn per visit
-Add new types of rewards
-Adjust expiration dates for points
-Simplify rules to avoid confusion
Small changes can make a big difference in keeping your customers excited about your program.
Keep Improving Customer Loyalty
Remember, the goal of your reward points program is to build strong customer loyalty. By monitoring and adjusting your program regularly, you create a better experience that encourages customers to keep coming back - and tell their friends too.
Staying flexible and responsive will help your loyalty program grow with your restaurant and keep it successful for the long term.
Frequently Asked Questions
How do I decide on the right reward points structure?
Choose a structure that fits your goals - whether it's earning points per dollar spent, per visit, or bonus points for specific actions.
What technology do I need to run a reward points program?
You can use your POS system if it supports loyalty programs, third-party apps, or dedicated software to track points and redemptions.
How can I promote my reward points program?
Promote it in-store with signs and staff mentions, online via social media and email, and offer sign-up bonuses to encourage enrollment.
What rewards work best for restaurants?
Free drinks, appetizers, desserts, discounts, or exclusive offers often appeal to customers - choose rewards that fit your restaurant's style.